Proposed Amendments to the DIFC Employment Law

The DIFC Work Legislation arrived into force on 14 January 2020 amending the DIFC Legislation No. 2 of 2019. The principal reason of the modification was to exchange the thought of end of company gratuity with the DIFC Staff Place of work Personal savings Plan (DEWS) or an choice qualifying scheme. The introduction of DEWS aligned the framework with worldwide very best observe.

Now, just one calendar year on, the DIFC intends to additional amend the current law to supply clarification and to handle any other parts of uncertainty. The proposed legislative adjustments look for to explain defined terms, rectify probationary intervals beneath short, mounted-term contracts as very well as the accrual of annual leave. Importantly, the amendments will render any settlement or arrangement that seeks to reclassify recurring payments to employees as non-recurring payments to be null and void and unenforceable. This prevents businesses lowering an employee’s essential wage calculation for the uses of the core gain contributions by an employer less than DEWS.

The DIFC Authority has printed the proposed legislative improvements for a 30-working day general public consultation time period, ending on 28 March 2021. The consultation paper is available right here.

For more info in relation to the DIFC Employment Legislation, be sure to get in touch with
Joanna Stewart ([email protected])